21 September 2012
Under the Reverse Charge Mechanism the Service recipient is liable to pay service tax in cash, directly to the Government Treasury on notified services as per Notification No. 30/2012- ST dated 20-06-2012 and as amended by Notification No. 45/2012- ST dated 07-08-2012. With effect from 1 July, 2012, there are certain services on which 100% service tax needs to be paid by Service Recipient and there is partial reverse charge wherein both service provider and service recipient needs to pay service tax as per defined percentage